2. A firm faces the production function 1 Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and L at prices per unit of 5 TL and 2 TL respectively. What combination of L and K should be used to maximize output if its input budget is constrained to 150 TL?
2. A firm faces the production function 1 Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and L at prices per unit of 5 TL and 2 TL respectively. What combination of L and K should be used to maximize output if its input budget is constrained to 150 TL?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![2.
A firm faces the production function
1
Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and
L at prices per unit of 5 TL and 2 TL respectively. What combination of L and
K should be used to maximize output if its input budget is constrained to 150
TL?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F337fd0d9-0cb3-4eb1-9bf7-5455804a3e1a%2Fbb33df19-f3a7-4e7e-b192-3698d0b0a1f5%2Focwk9cl_processed.png&w=3840&q=75)
Transcribed Image Text:2.
A firm faces the production function
1
Q = f(K,L) = 80 [0, 4K-0,25 +0,4L-0,25] 0.25. It can buy the inputs K and
L at prices per unit of 5 TL and 2 TL respectively. What combination of L and
K should be used to maximize output if its input budget is constrained to 150
TL?
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